Members Absent

Melinda Barnard

Carol Cinquini

Dennis Harris

Kitty Merrifield-Salsedo

Drew Calandrella

Cara Puccio

Crystal Shrouf

Karl Binswanger

Katharyn Crabbe

Marty Ruddell

Susan McKillop

APPROVAL OF THE AGENDA

Steve Wilson brought the meeting to order at
12:25 PM. Wilson indicated the loss reporting policy was not ready for
discussion and asked that it be removed from the Agenda. No objections
were expressed. Wilson asked for a motion to approve the Agenda as
amended. A motion was made by John Bond. A second was obtained from Andy Merrifield. The amended Agenda was approved unanimously.

APPROVAL OF THE MINUTES February 12, 1999

Wilson then asked for a
motion to approve the minutes of February 12, 1999. A motion was made by
Floyd Ross. A second was obtained from Bond. The minutes were then
approved with no nay votes but with abstentions from those Members not
present at the February 12, 1999 meeting. Merrifield asked that the
minutes be distributed more than one day in advance. Neil Markley will
try to distribute the minutes no later than the Monday before the
meeting.

ACTION ITEMS/INFORMATION ITEMS TO DATE

Wilson asked the Committee to
review the Action/Information Items to date contained in their agenda
packets.

VICE-PRESIDENT'S REPORT

CMS Update

Wilson introduced Larry Linn to
give an update on the CMS project. Linn reported 100 people attended the
Peoplesoft product demonstration on March 5, 1999. A product overview was
also distributed at that meeting. Linn informed the Committee that a CMS
website and discussion forum is up and being maintained by University
Affairs. Linn will be visiting CSU Fresno to further examine how that
campus uses the Peoplesoft product on a Macintosh platform. Wilson
updated the Committee on the finance module. Edna Nakamoto updated the
Committee on the human resources module. Nakamoto indicated 5 prototype
teams for 7 modules have been developed and prototyping will begin in
April.

Land Acquisition

Schlereth indicated this report satisfies the
accountability measure assigned to Administration and Finance. Sale of
the Henderson parcel has officially closed. Structures on the property
have been assessed for historical significance by the Northwest
Information Center and have been deemed of no historical significance.
The structures will be demolished in a manner to minimize the possibility
of asbestos related issues. The Anderson parcel is still in negotiation.

1998-1999 Expenditure Plan

Copies of the expenditure plans have been sent
to numerous people on campus including the CRC. The Chancellor's Office
has also received a copy. Schlereth noted this Expenditure Plan is the
most comprehensive to date. The California Faculty Association is
interested in using this Expenditure Plan as a model. The document also
includes audits of the University and Auxiliaries.

AUDIT REPORTS

The University went through financial audits and one
risk management compliance . Letitia Coate walked the Committee through
the audits. Coate explained the financial audits are GASB GAAP audits
conducted by independent auditors and contain four main parts: the
management letter, auditor's report, financial statements, and notes. The
auditors had two findings: the University needs to examine Y2K issues and
additional resources should be allocated to the accounting staff. The
risk management compliance audit was conducted by an auditor from the
Board of Trustees. Schlereth noted the auditors would return for a
follow-up visit on March 31, 1999. Schlereth noted the Risk Management
position has been a high priority at Sonoma State for the last two years.
Schlereth commended the accounting staff and departments for their hard
work and very good audits. Wilson pointed out the compliment Zainer
Rhinehart's auditors bestowed on the University for integrating the
Auxiliaries into Financial Services. Wilson complimented the Financial
Services staff. Bernie Goldstein noted Chancellor Reed and Audit Chair
Stanley Wang, are making audits a large priority at the system level.

PBAC UPDATE

Schlereth presented Rose Bruce's statistics related to
large classes at Sonoma State. Schlereth reviewed new university-wide
items which he feels will be the centerpiece of the upcoming PBAC
meetings.

Mandated CSU Item. Relates to the second year of a multi-year financial
plan discussed with PBAC.

Hope Scholarship Reporting $ 20,000

Mandated Federal Item. Relates to providing each student with an IRS
report reflecting payments made for instruction

YEAR 2000 Compliance $350,000

Un-avoidable expense. Relates to replacing and repairing certain portions
of the campus infrastructure primarily in Information Technology, and the
conversion of the campus network from Localtalk to Ethernet. Project
costs estimated at $1,500,000 and exclude any Year 2000 issues in the
physical plant. Financed with a five year interfund loan from the CSU at
6%. Annual debt service projected at $350,000. Alternate funding being
explored and may result in the elimination of this item.

Schulz Center Warm Shell $335,000

Relates to the completion of the third floor warm-shell space in the
Schulz Center brought about by a construction bid higher than budget.
Also includes resources to finance moving the Library and Information
Technology from from Salazar Hall., Total project cost estimated at
$2,500,000. Financed with a ten year interfund loan from the CSU at 6%.
Annual debt service projected at $335,000. Delay in funding this item
will increase project costs by at least $1,000,000 and result in an
unfinished, unusable third floor in the Schulz Center.

Un-Identified CSU Items $150,000

Relates to the probability of additional mandates from the CSU likely to
be identified between now and the issuance of the final budget. $150,000
is an estimate only and could be considerably higher depending on the
outcome of collective bargaining and CSU strategies to fund technology
needs in the wake of CETI. On item has already been identified and
relates to the acquisition of property insurance for non-bond financed
campus buildings. For SSU, this initiative, should it be launched, could
range between $75,000 and $150,000 annually.

University Reserve $300,000

Relates to the lack of a University Reserve and historical data
illustrating. Reserve expenditures of approximately $300,000 annually.
Failure to fund this item "off the top" will require assessing each
Division for Reserve expenditures as items are approved for funding from
this budget annually.

CMS General Fund One-Time Assessments $118,000

Relates to one-time annual assessments for CMS for individual General
Fund units. One-Time assessments will be required in each of the next six
fiscal years. Failure to fund this item "off the top" will require
assessing each Division unit for CMS as was done in fiscal 98-99

Footnote on Employee Compenstation Increase: Represents a decrease from a 4% salary increase pool to a 2.45% salary increase pool

DISCRETIONARY FUNDS

Item

3% Enrollment Growth

$ 52,516,000

$ 52,516,000

VARIANCE

$0

Sonoma State University expects to grow by just under 1% or 54 FTES 54
FTES will produce approximately $335,000 of new campus discretionary
revenue 54 x $6200 = $334,800.

Schlereth noted the PBAC did not discuss the University Reserve due to
time constraints. Jim Christmann asked if new money would be used to
lower the university-wide items or would it be given out based on the
marginal cost formula. Schlereth answered it would most likely be used to
lower the university-wide items. Andy Merrifield asked if the May revised
looks better. Schlereth believes it will, but only in the areas of
technology and compensation which doesn't help the university-wide list.

CRC SUB-COMMITTEE REPORTS

Alternative Transportation

No Report

Exterior Lighting

Bond reported the group has developed a strategy to
walk through the campus every six months to locate problem areas. At Cara
Puccio's request, conduit has been run for the "F" lot crosswalk area.
Further, the crosswalks will be repainted over Spring Break for better
visibility. Letters for the building will be installed on March 20, 1999
and bids are going out for the building monument signs.

Human Resources Information Group

Schlereth stated the group was going
and doing excellent work. Their first item to come to the CRC is the
Recruitment Policy the Committee will be discussing today. An ADA and
Leave Policy will be forthcoming. The Group is also looking at ergonomic
furniture needs.

Financial Services Information Group

Wilson indicated they will be
meeting on March 16, 1999. They will be discussing the Governor's Budget
and an Investment Policy

Classroom Renovation Committee

This Committee is awaiting faculty members
and should begin after Spring Break.

MAINTENENCE AND REPAIR 1999-2000

Bond explained he is not sure the
exact amount of dollars to expect yet, however the budget is being
focused on instructional spaces. Schlereth believes we will get $354,000+
in deferred maintenance money and $300,000-$700,000 in minor capital
money. Rand Link asked that any Gym work that is to be started be
communicated early so the Gym may be scheduled accordingly.

RECRUITMENT POLICY

Schlereth introduced Joyce Suzuki to the Committee
who highlighted the proposed Recruitment Policy. This policy was an
update from the 1989 Recruitment Policy. The Human Services staff is also
updating forms which will be placed on the Human Services server.
Discussion ensued on this policy with questions and suggestions made to
Suzuki. Schlereth noted while many institutions recruit in different
ways, he wanted this policy to reflect the culture of Sonoma State
University. The PeopleSoft product will change this policy again when it
comes on-line, he added. The proposed policy was sent back to the Human
Resources Information Group for revision.

SERVERY REDESIGN

Neil Markley and Bruce Walker presented the budget,
timeline, and schematics for the Commons Servery remodel. The project has
been budgeted at $50,000 and will begin after commencement. Four themes
will be included in the servery: burgers and fries, sandwiches and
salads, smoothies, and Pastries Plus. The menu and prices had been
discussed at a previous meeting. The area will also be made more
attractive for catering when viewed from the dining room. Each theme in
the servery will have its own cash register and drink station to help
expedite the flow of customers. The lines in the Commons will be hard to
eliminate because of the large volume in a limited space at lunch,
however the new design should help alleviate the problem.

PARKING POLICY

Schlereth asked Ogg to review changes to the Parking
Policy, but asked that questions be kept until next meeting because due
to time constraints. Ogg reviewed the proposed changes.

ITEMS FOR THE GOOD OF THE ORDER

Bond noted he was working with the vendor to correct the problems with the seats in Darwin.